Is an MBA Worth It in Today's Economy? Unveiling Key Factors and Benefits
Should you get an MBA in today’s economy?
Deciding to pursue a degree in higher education is an important decision that requires research, commitment, but most importantly, the right timing.
In 2022, approximately 15.4 million people in the US were laid off. Surprisingly, the tech industry has been hit the hardest this year, with over 104,000 employees laid off so far in 2023. Given these statistics, you might be asking yourself if now is the right time to pursue a higher degree, such as an MBA. More importantly, is an MBA worth it in today's economy?
To determine that, you need to understand the benefits of getting an MBA. There are many, but let's name a few:
1. More competitive in the job market: In 2022, 92% of employers were planning to hire MBA graduates across all industries. The demand for MBA graduates is high, and research shows that obtaining an MBA can lead to greater lifetime earning potential. Investing time now in getting an MBA can pay off in the future.
2. Expanded leadership opportunities: 33% of Fortune 500 CEOs hold an MBA, and many of them graduated from top MBA programs. With an MBA degree, you are more likely to land a job as a manager, opening up expanded leadership roles.
3. Expanded network and skills: One significant benefit of pursuing an MBA degree is the networking potential it offers. In today's job market, many opportunities come through referrals, with 30-50% of people landing jobs based on connections. Your school network can help open doors and provide you with valuable opportunities.
Quick story:
I started my MBA program in the fall of 2020, which coincided with the onset of the Covid pandemic. Many people had been laid off from their jobs, and uncertainty loomed. Some MBA candidates chose to defer their programs in the hopes that the job market would rebound by the time they secured internships. Economists predicted that the market would rebound by 2022 when these candidates would graduate. However, no one could have foreseen the rapid rise in inflation, causing a major shift in what seemed like an economic rebound last summer. My point is that while you can try to predict the market's behavior, no one really knows for sure. Instead, start making your plan today to position yourself as best as possible.
Here are a few key factors you should consider:
1. Create a budget or model your pay: Consider what your life would be like as an MBA student today and project your earnings for two years after graduation, based on the average salary in your industry/role of interest. Compare it to your current income.
2. Consider the competitive job market: If you're concerned about today's economy, think about the level of competition you would face from individuals who have higher degrees or more advanced skills than you do.
3. Assess your current circumstances: Reflect on what's happening in your life right now that could hinder you from fully taking advantage of every opportunity during your time in B-school. The worst thing you can do is set yourself up for missed opportunities.
By considering these factors and making informed decisions, you can navigate the complexities of today's economy and position yourself for success in the long run.
